Agreement for Sale of Motor Vehicle in Kenya

Agreement for Sale of Motor Vehicle in Kenya

When buying or selling a motor vehicle in Kenya, a crucial step is drafting a legally binding agreement for the sale of a motor vehicle. This agreement outlines the terms and conditions under which the vehicle will be sold, providing a layer of security for both parties. It minimizes risks, ensures clarity, and solidifies the transaction in a way that complies with Kenyan law.

Why You Need an Agreement for Sale of Motor Vehicle in Kenya

Whether you’re the buyer or seller, a sale agreement protects your interests and clarifies obligations. As a buyer, it is essential to understand that this agreement goes beyond a verbal promise, detailing the responsibilities of each party and preventing potential disputes. For sellers, it documents the transfer, reducing liabilities once the vehicle changes ownership.

Key Steps to Complete the Sale of a Motor Vehicle in Kenya

For buyers, it is important to conduct due diligence to avoid any legal issues. Here’s what you need to do:

1. Obtain a Copy of the Logbook
   The logbook serves as proof of vehicle ownership. Request a copy of the logbook from the seller, which contains details like the chassis number, registration number, and ownership history.
2. Conduct a Motor Vehicle Search at NTSA
   Verify ownership details by conducting a motor vehicle search through the National Transport and Safety Authority (NTSA) portal. This search will confirm if the seller is the rightful owner and if there are any unpaid penalties or loans attached to the vehicle.
3. Verify the Seller’s Identity
   Ensure that the seller’s name on their National Identity Card (ID) matches the one on the logbook. This step helps prevent potential fraud.
4. Check the Vehicle’s Condition
   It’s advisable to inspect the vehicle physically or hire a qualified mechanic to assess its condition. Confirm that the engine and chassis numbers match those on the logbook.

Requirements for an Agreement for Sale of Motor Vehicle in Kenya

Creating an agreement for the sale of a motor vehicle in Kenya involves gathering several details. Here are the essential components:

• Name and Postal Address of the Seller
  The agreement should include the seller’s full name and postal address for accurate identification.
• Name and Postal Address of the Buyer
  The buyer’s full name and postal address are equally important for proper documentation.
• Details of the Motor Vehicle
  Include essential details such as the vehicle’s registration number, make, model, color, and chassis number to ensure there’s no ambiguity.
• Copy of the Logbook
  Attach a copy of the logbook to the agreement as evidence of ownership.
• Terms of Payment
  Specify the purchase price and the agreed terms of payment. State whether the buyer will make a full payment or if there are installments and due dates.
• Warranties and Representations
  Include any warranties or representations about the vehicle’s condition, accident history, or other important factors.
• Date of Sale
  Indicate the date when the transaction takes place.

Witnessing the Agreement

Once the agreement has been prepared and reviewed by both parties, each party should sign it, and the document should be witnessed by an advocate. The advocate’s role is to verify that all parties are signing willingly and understanding the terms outlined.

Completing the Transfer of Ownership on TIMS

Once the agreement has been signed, the buyer and seller need to complete the vehicle transfer through the NTSA’s Transport Integrated Management System (TIMS). The steps include:

1. Seller Initiates the Transfer on TIMS
   The seller logs into their TIMS account and initiates the vehicle transfer process, entering the buyer’s details as required.
2. Buyer Accepts the Transfer
   The buyer logs into their TIMS account to accept the transfer. Once the buyer accepts, the NTSA will review and process the request.
3. Issuance of a New Logbook
   Upon successful transfer, a new logbook is issued under the buyer’s name, officially marking the completion of the sale.

Conclusion

An agreement for the sale of a motor vehicle in Kenya is an essential document that safeguards the rights of both the buyer and seller. By ensuring all necessary details are included in the agreement, verifying ownership, and finalizing the transfer through NTSA’s TIMS platform, both parties can avoid future disputes. Whether buying or selling, having a clear and legally binding sale agreement ensures a smooth and transparent transaction.

By following these steps and incorporating the necessary precautions, you can ensure that your motor vehicle transaction adheres to Kenyan laws and that your rights are protected.

Do you need an agreement for sale of a motorvehicle in Kenya? Please contact us at info@swkadvocates.com